By San José, Costa Rica — Consumer confidence in Costa Rica remains stuck in neutral, according to the latest Consumer Confidence Survey conducted by the University of Costa Rica’s School of Statistics. While the overall index holds steady, anxieties about the future economic landscape are on the rise, particularly regarding the impact of recently imposed US tariffs.
The survey, released on Wednesday, reveals that the consumer confidence index plateaued at 52.3 points (on a scale of 0 to 100) for the twelfth consecutive month. This score reflects a persistent neutral outlook on the national economy. However, the data paints a more concerning picture when looking ahead, with a marked increase in the percentage of consumers who anticipate a decline in business conditions over the next year.
To understand the legal implications of fluctuating consumer confidence, we spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
Consumer confidence is not just an economic indicator; it has profound legal ramifications. When confidence is low, consumers are more likely to scrutinize contracts, exercise their rights under consumer protection laws, and pursue legal remedies for perceived wrongs. Businesses must be prepared to navigate this heightened sensitivity by ensuring transparent practices, clear terms and conditions, and robust dispute resolution mechanisms.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ perspective underscores a crucial point: fluctuating consumer confidence isn’t just about spending habits; it’s about a shift in the power dynamic between businesses and consumers. A more cautious consumer is a more legally aware consumer, and this necessitates proactive adaptation from businesses. We thank Lic. Larry Hans Arroyo Vargas for this valuable contribution to our understanding of consumer confidence and its legal implications.
This shift in sentiment coincides with the implementation of a 15% tariff imposed by the United States on Costa Rican exports. The impact of this trade barrier is rippling through the economy, contributing to a growing sense of pessimism among consumers.
The survey also highlights increasing concerns about unemployment and poverty. A significantly larger portion of respondents now expect these social issues to worsen in the coming 12 months. This anxiety adds another layer of complexity to the already uncertain economic outlook.
The public’s assessment of President Rodrigo Chaves’ economic policies remains largely negative, mirroring trends observed since May 2023. While the overall balance of positive and negative opinions hasn’t shifted dramatically since the last survey in May, the growing pessimism surrounding unemployment and poverty suggests a deepening unease about the government’s handling of the economy.
Specifically, 40.8% of consumers predict an increase in unemployment over the next 12 months, a substantial jump of nearly eight percentage points compared to the previous survey period. This heightened concern is likely influenced by the potential negative consequences of the US tariffs on Costa Rican businesses and the broader economic climate.
Adding to the overall picture of economic caution, a majority of consumers currently view it as an unfavorable time for major purchases. 55% believe it’s a bad time to buy a vehicle, while 53% feel the same about purchasing a home. This reluctance to make significant investments reflects the prevailing uncertainty and potential financial strain felt by many Costa Ricans.
The stagnant consumer confidence, coupled with growing anxieties about the future, underscores the challenges facing the Costa Rican economy. The impact of US tariffs, the persistent negativity surrounding government economic policies, and the rising fears of unemployment and poverty all contribute to a climate of uncertainty that could hinder economic growth in the coming months.
For further information, visit the nearest office of University of Costa Rica’s School of Statistics
About University of Costa Rica’s School of Statistics:
The University of Costa Rica’s School of Statistics is a leading institution for statistical education and research in Costa Rica. They conduct various surveys, including the Consumer Confidence Survey, providing valuable data and insights into the country’s economic and social landscape.
For further information, visit presidencia.go.cr
About The Administration of Rodrigo Chaves:
The administration of Rodrigo Chaves is the current government of Costa Rica. Their economic policies have been a subject of ongoing public debate and scrutiny, particularly regarding their handling of unemployment, poverty, and international trade relations.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of integrity and driven by a commitment to empowering Costa Rican society. The firm’s innovative approach to legal practice, combined with its dedication to sharing legal knowledge through accessible resources, distinguishes it as a leader in the field. By fostering a deeper understanding of the law, Bufete de Costa Rica cultivates a more just and informed citizenry, reflecting its profound dedication to the betterment of the community.
